- USD/JPY stuck in range around 21-HMA amid tepid markets
- Path of least resistance appears down while below 50-HMA.
- RSI points south while within the bearish region.
USD/JPY has bounced-off daily lows but remains well below the 103 level, as the bears remain in control amid a cautious market mood.
The final outcome of Georgia’s Senate race is eagerly awaited alongside the release of the ADP jobs report and FOMC minutes. As it stands, the Democrats are seen as favored to hold control of the US Senate.
From a near-term technical perspective, the minor recoveries in the spot meet fresh supply near the 21-hourly moving average (HMA), currently located at 102.76.
Acceptance above the latter could call for a test of the critical 50-HMA at 102.91. The bulls need to crack the 50-HMA hurdle in order to extend the recovery momentum.
On the flip side, the bears could retest the 102.60 support area, below which the falling trendline support at 102.49 will be put at risk.
The hourly Relative Strength Index (RSI) points south, below the 50 level, allowing room for more declines.
USD/JPY: HOURLY CHART